07 February 2003
According to district auditor Clive Portman, the council's involvement with the Crinkley Bottom Theme Park, home of Mr Blobby, ranged from irrational to unlawful and has left it with a £2m bill.
The investigation centres on the failed theme park, which opened in July 1994 and then closed 13 weeks later.
Portman found that the council's first deal with TV presenter Noel Edmonds' company Unique was 'imprudent', dividing up shares of gate sales and responsibility. But three months later the council negotiated a further deal with Unique, promising it a fixed payment of £1m regardless of the park's success.
Once the ill-fated venture closed, the council made a further error by attempting to sue Unique for breach of contract. It claimed that Edmonds had failed to promote the theme park or make enough personal appearances with Mr Blobby in tow. The council ended up making an out-of-court £950,000 payment to Unique, largely due to its earlier £1m promise.
Portman found two council officers guilty of misconduct and exonerated two others. A further report is due out in the spring.
'Lancaster City Council's involvement in this short-lived and ill-fated venture cost local tax payers more than £2m,' said Portman. 'Its decision in June 1994 to enter into the supplement agreement was irrational and unlawful.'
Mr Blobby became a popular character after appearing in Noel's House Party in the 1990s.
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